Dear Seniors,
Ours is a registered society with a total staff of 9. Out of this 2 office attdt and one driver was taken on contract basis and working with us for last 10 months without any service break. These 3 employees were not taken through any labour contractor. The were appointed dirctly by us and being paid a consolidated amount of 4000/- (NO PF, ESI).
Here my question is, can this kind of appointment be considered legal. What are the pros and cons. Now our management is saying that "they should have been given a break after completion of 96 days of service. Now they can claim for regularisation. We have to regularise them through contractor ASAP."
Kindly let me know whether we can continue with this arrangement further (from legal point of view). If not then why and what should we do now. What is the maximum period for which the employees can be taken on contract (direct company contracts). Is it 6 months of 96 days.
Kindly advise.
best regards,
Priyanka
From India, Mumbai
1Ours is a registered society with a total staff of 9. Out of this 2 office attdt and one driver was taken on contract basis and working with us for last 10 months without any service break. These 3 employees were not taken through any labour contractor. The were appointed dirctly by us and being paid a consolidated amount of 4000/- (NO PF, ESI).
Here my question is, can this kind of appointment be considered legal. What are the pros and cons. Now our management is saying that "they should have been given a break after completion of 96 days of service. Now they can claim for regularisation. We have to regularise them through contractor ASAP."
Kindly let me know whether we can continue with this arrangement further (from legal point of view). If not then why and what should we do now. What is the maximum period for which the employees can be taken on contract (direct company contracts). Is it 6 months of 96 days.
Kindly advise.
best regards,
Priyanka
From India, Mumbai
Dear Priyanka, Under purview of the law, these employees will attract ESI & PF from the day 1 and there is no alternative. Best Regards V Sathyanarayanan
From India, Madras
From India, Madras
If you society covered under EPF and ESI Act, all employee must be covered under both act. Matter does not carry that they are temporary or permanent. Along with the Minimum wage act also apply for all employee followed by state rules.
From India, Delhi
From India, Delhi
But the total no. of contractual employees does not exceed 10. so do u think ESI and PF are applicable.
From India, Mumbai
From India, Mumbai
Dear Priyanka, If all staff is cover under PF & ESI then these employees are also applicable. The max. duration for contract is 6 months. Regards Vikas
From India, Yavatmal
From India, Yavatmal
Dear Friend
Taking of employees on contract basis, is absolutely legal but to avoid any misconceptions better sign an agreement with them for fixed period.
so that they will not demand permanent employment.
Yes that is better that u r going for arrangement of third party contract as it is the safe option.
there is no maximum or minimum period of employee to be taken in contract. its all depend on agreement between the two.
Regards
From India, Vadodara
Taking of employees on contract basis, is absolutely legal but to avoid any misconceptions better sign an agreement with them for fixed period.
so that they will not demand permanent employment.
Yes that is better that u r going for arrangement of third party contract as it is the safe option.
there is no maximum or minimum period of employee to be taken in contract. its all depend on agreement between the two.
Regards
From India, Vadodara
Hello,
With the facts provided by you, it is clear that no employment law is applicable to you, except the Shops Act (interpretation based) and the Minimum Wages Act (where for the time being you seem to be OK but not necessarily compliant.)
Forget the law, do you not consider it to be totally WRONG to engege employees and not formalize "terms & conditions of employment"?
Why do we call ourselves HR practitioners?
As of now, regularize their status vis-a-vis the employment by putting them on the rolls of a "conractor" who it will appear, is providing the labour. This will add to your employment cost as the contractor's commission will also be applicable hereafter. While this be so, ask the contractor (orally) to keep changing the labour at a frequency of 6 months or so. This is not essential but advisable.
Engaging employees (required regularly for routine work, and to give them breaks every now and then is a BAD practice and against HR ethics. I wonder why employers resort to this at all!
If you have more queries on this or other subjects, please do not hesitate but please function (as you are trying right now, by seeking help through citeHR forum) to function in conformity with applicable law and the professional ethics! On that I am willing to help.
Regards
samvedan
July 15, 2008
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From India, Pune
With the facts provided by you, it is clear that no employment law is applicable to you, except the Shops Act (interpretation based) and the Minimum Wages Act (where for the time being you seem to be OK but not necessarily compliant.)
Forget the law, do you not consider it to be totally WRONG to engege employees and not formalize "terms & conditions of employment"?
Why do we call ourselves HR practitioners?
As of now, regularize their status vis-a-vis the employment by putting them on the rolls of a "conractor" who it will appear, is providing the labour. This will add to your employment cost as the contractor's commission will also be applicable hereafter. While this be so, ask the contractor (orally) to keep changing the labour at a frequency of 6 months or so. This is not essential but advisable.
Engaging employees (required regularly for routine work, and to give them breaks every now and then is a BAD practice and against HR ethics. I wonder why employers resort to this at all!
If you have more queries on this or other subjects, please do not hesitate but please function (as you are trying right now, by seeking help through citeHR forum) to function in conformity with applicable law and the professional ethics! On that I am willing to help.
Regards
samvedan
July 15, 2008
----------------------------------
From India, Pune
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APPROVAL, CONTRACTUAL EMPLOYEES.doc